Can You Use An Sba Loan To Acquire A 501(C)(3) Charitable Nonprofit

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11/30/2020 Redacted Redacted

searcher University of Dallas

CAN YOU USE AN SBA LOAN TO ACQUIRE A 501(C)(3) CHARITABLE NONPROFIT

Simple question

1 like 33 views 4 comments

searcher - 12/01/2020

Interesting concept. Tracking any answers that come in.

like reply | 0 likes

lender - 12/03/2020

No. As an old SBA banker once told me, the only church's eligible for SBA loans are Church's Chicken. Applies to all 501c3, not just churches though.

like reply | 2 likes

lender University of Missouri - Columbia - 12/03/2020

John is correct. It has to be a for profit business to qualify

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searcher Western Michigan University Michigan State University - 12/04/2020

A non-profit organization that has qualified for tax emption cannot be sold or purchased. NPOs do not have owners like you would have in a for-profit venture because the operations of an NPO is for the public good and cannot benefit a single individual or specific group of individuals. An NPO selling assets also has to be careful because such a transaction may be considered unrelated income and be table. Definitely consult with an expert.

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